IBDR vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricIBDRVXUSWinner
Expense Ratio0.10%0.05%
AUM$3.4B$156.5B
Dividend Yield4.12%2.60%
Holdings2648,747
YTD Return+1.86%+14.57%
1Y Return+3.86%+27.82%
3Y Return (annualized)+5.00%+19.27%
5Y Return (annualized)+1.55%+9.28%
Volatility (annualized)4.6%15.1%
Max Drawdown-16.1%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionSep 13, 2016Jan 26, 2011

IBDR vs VXUS Performance

iShares iBonds Dec 2026 Term Corporate ETF (IBDR) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year IBDR returned +3.86% while VXUS returned +27.82%. Year to date, IBDR is up 1.86% versus a gain of 14.57% for VXUS.

Over three years, IBDR compounded at +5.00% per year against +19.27% for VXUS; over five years the annualized figures are +1.55% and +9.28% respectively. Across the full 10-year window we track, VXUS has the edge at +4.86% annualized vs +1.55%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 4.6% for IBDR. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -16.1% for IBDR and -39.9% for VXUS. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBDR charges 0.10% per year while VXUS charges 0.05%. On a $10,000 position that is $10 vs $5 annually, a gap of $5 per year that compounds over a long holding period. On income, IBDR currently yields 4.12% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

IBDR and VXUS share 0 holdings out of 8084 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, IBDR or VXUS?

IBDR has an expense ratio of 0.10% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $5 per year of difference.

Which performed better, IBDR or VXUS?

Over the past year IBDR returned +3.86% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (10 years), IBDR annualized +1.55% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, IBDR or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 4.6% for IBDR. Worst drawdown: IBDR -16.1% vs VXUS -39.9%.

Should I hold both IBDR and VXUS?

IBDR and VXUS have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBDR and VXUS?

IBDR and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8084 unique securities.

Which pays a higher dividend, IBDR or VXUS?

IBDR yields 4.12% while VXUS yields 2.60%, so IBDR currently pays the higher dividend yield.

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